- ETH slipped below $3,000, entering a volatile consolidation phase despite bullish structure
- Whales are accumulating on dips, while retail traders chase short-term moves
- Strong TVL supports long-term confidence, though near-term momentum remains fragile
Ethereum’s market has slipped into an awkward middle ground. Price action has weakened, yet the broader structure and long-term fundamentals still look fairly constructive. After dropping below the $3,000 mark and giving back roughly 16% of its January 2026 gains, ETH moved into a choppy consolidation phase. Technical patterns continue to lean bullish, though momentum indicators are flashing hesitation, almost like the market needs to catch its breath.
That divergence has left traders watching closely. The setup suggests buyers still have a structure to defend, but the lack of follow-through raises the risk that downside pressure could deepen before any real recovery takes shape.
Ethereum Completes Bullish Pennant on the Monthly Chart
By January 25, Ethereum was finishing a bullish pennant formation on the monthly timeframe. This kind of pattern usually attracts longer-term traders, especially when price drifts back toward key support levels on lower timeframes. Many were positioning for a breakout, assuming one decent catalyst could push ETH higher.
The setup itself remains intact, but momentum hasn’t fully cooperated. A bearish MACD cross around $2,942 introduced some caution right as price entered a sensitive zone. As ETH hovered there, the question became less about the pattern and more about timing. Would buyers step in with conviction, or would bearish pressure force a deeper pullback first.
Whales Absorb Dips While Retail Chases Momentum
On-chain data shows a clear split in behavior. According to CryptoQuant, large holders have been steadily accumulating ETH, particularly during the pullback into the $2,600 to $3,000 range. That kind of activity points to long-term positioning, with whales using weakness as an opportunity rather than a reason to exit.
Retail traders, meanwhile, appear to be doing the opposite. Short-term price swings have pulled them toward local highs, adding to volatility and, at times, reinforcing sharp intraday moves. The contrast is hard to miss. One side is playing a longer game, while the other reacts to every push and pull, creating a market that feels tense and fragmented.
Ethereum’s TVL Stays Firm Despite Price Pressure
Despite the recent dip, Ethereum’s Total Value Locked remains near $331 billion, a level that highlights the network’s underlying strength. Historically, periods where ETH traded below the implied value of its ecosystem often lined up with longer-term accumulation zones. In past cycles, those phases eventually gave way to strong recoveries once volatility cooled down.
Still, TVL on its own doesn’t guarantee an immediate bounce. Momentum headwinds remain, and broader risk appetite across crypto feels uncertain. For now, the market is stuck watching whether dip buying continues to absorb supply, or if sellers manage to push ETH lower before the next attempt higher.
